Brazil Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 5.82 Billion |
| Market Size (2030) | USD 7.63 Billion |
| Growth Rate (2025 - 2030) | 5.56% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Brazil Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Brazil courier, express, and parcel (CEP) market size stands at USD 5.82 billion in 2025 and is projected to reach USD 7.63 billion by 2030, reflecting a 5.56% CAGR between 2025-2030. Strong digital-commerce uptake, a widening instant-payment footprint via PIX, and steady federal spending on logistics infrastructure underpin the growth outlook. Exploding B2C parcel flows, rising adoption of same-day options in tier-1 cities, and a deepening shift toward omnichannel retail formats together reinforce service-mix upgrades among leading operators. Dedicated freighter capacity, expanded cold-chain nodes, and AI-enabled route planning have become central competitive levers as providers seek volume, density, and higher per-stop revenues. At the same time, heavier regulatory attention on low-value imports and volatile fuel levies keeps margin management high on executive agendas.
Key Report Takeaways
- By destination, domestic deliveries held 64.72% of the Brazil courier, express, and parcel (CEP) market share in 2024, while international parcels are advancing at a 5.76% CAGR between 2025-2030.
- By speed of delivery, non-express services dominated with 76.56% share in 2024; express shipments post the highest projected CAGR at 6.44% between 2025-2030.
- By model, the business-to-consumer (B2C) segment captured 58.04% of the revenue share in 2024, whereas consumer-to-consumer (C2C) is expanding at a 3.33% CAGR between 2025-2030.
- By shipment weight, light parcels commanded a 70.21% share in 2024, and heavy parcels are growing at a 4.18% CAGR between 2025-2030.
- By mode of transport, road accounted for 52.89% of the Brazil courier, express, and parcel (CEP) market size in 2024, while air transport is expected to record the quickest CAGR at 4.73% between 2025-2030.
- By end-user industry, manufacturing led with 41.90% revenue share in 2024; e-commerce is forecast to advance at a 6.06% CAGR between 2025-2030.
Brazil Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive B2C e-commerce expansion | +1.8% | São Paulo, Rio de Janeiro, Belo Horizonte | Medium term (2-4 years) |
| USD 200 billion logistics-infrastructure plan | +1.2% | Southeast and South corridors | Long term (≥4 years) |
| Rising LPI ranking and customs digitization | +0.9% | International gateway cities | Medium term (2-4 years) |
| Healthcare and cold-chain parcel growth | +0.7% | Major metropolitan hubs | Short term (≤2 years) |
| PIX instant-payment rails | +0.6% | Urban centers | Short term (≤2 years) |
| Tier-3 micro-fulfillment hubs | +0.4% | Interior regions | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
Explosive B2C E-Commerce Expansion
Brazilian online sales rose 18.7% in H1 2024 to BRL 160.3 billion (USD 28.66 billion)[1]Brazilian E-Commerce Association, “E-commerce Growth Report 2024,” abcomm.org. MercadoLibre has earmarked USD 5.8 billion for 2025, with half funding warehouse duplication to shorten delivery windows. Mobile devices drive 67% of checkouts, prompting carriers to embed real-time tracking and flexible time-slot selection that mirror ride-hailing interfaces. Social-commerce sellers in tier-2 cities leverage localized inventory to cut last-mile costs by nearly 20%, accelerating C2C parcel density. As checkout abandonment falls when same-day options appear, operators offering dynamic pricing for premium speed secure higher order conversion.
USD 200 Billion Federal Logistics-Infrastructure Pipeline (2023-27)
The Novo PAC allocates USD 200 billion through 2027 for multimodal corridors, port dredging, and IoT-ready road upgrades[2]Ministry of Infrastructure Brazil, “Novo PAC Projects,” gov.br/infraestrutura. Works along BR-381-262 in Minas Gerais aim to slash transit times between manufacturing clusters and Santos port by up to 25%. Paved-lane additions are set to lift freight reliability for heavy parcels, supporting agribusiness deliveries into Mato Grosso. Digital infrastructure spending within the same program funds 5G rollouts along federal highways, enabling real-time telematics uploads from CEP fleets. Providers anticipate network latency reductions that streamline proof-of-delivery flows and shrink driver dwell time at hubs.
Rising LPI Ranking and Customs Digitization (PRC Program)
Brazil’s Logistics Performance Index ticked up to 3.2 in 2024, buoyed by the Remessa Conforme regime that cut compliant parcel clearance to hours rather than days[3]World Bank, “Logistics Performance Index 2024,” lpi.worldbank.org. Automated data pre-advice trims manual document checks, while risk algorithms segregate duty-paid bundles for express release. Although a new 20% levy on consignments ≤USD 50 added cost, platforms integrated tax calculators into checkout flows, preserving order transparency. Global merchants now preload HS codes, minimizing rework at Viracopos and Galeão gateways. Carriers report 12% fewer storage-fee disputes since the system went live in August 2024.
Healthcare and Cold-Chain Parcel Growth (Vaccines, Biologics)
Temperature-sensitive volumes gained prominence after COVID-19, and specialized pharmaceutical parcels now command 3-4× premium yields. DHL’s CRYOPDP acquisition gave the network GDP-rated capacity across São Paulo and Recife, with validated passive packaging extending hold time to 120 hours[4]SINDUSFARMA, “Pharmaceutical Logistics Report 2024,” sindusfarma.org.br. Telemedicine uptake fuels prescription drug dispatch to homebound patients under aging-population programs run by the Health Ministry. Carriers hire pharmacists as compliance officers to oversee lane validations, while ANVISA guidelines mandate electronic data-logger uploads at every hand-off. These standards spur investments in redundancies such as dual-zone delivery vans and back-up power at urban depots.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fuel-price and ICMS volatility | -1.1% | Long-haul interstate routes | Short term (≤2 years) |
| <13% paved-road ratio | -0.8% | North and Northeast states | Long term (≥4 years) |
| New 20% import tax on ≤USD 50 parcels | -0.6% | International gateway cities | Medium term (2-4 years) |
| Cargo-theft hot spots | -0.4% | São Paulo–Rio Grande do Sul corridor | Short term (≤2 years) |
| Source: Mordor Intelligence | |||
Fuel-Price and ICMS Volatility Lifting Road-Freight Costs
Diesel quotes rose sharply in early 2025, lifting the fuel share of long-haul operating costs to 40%. Concurrently, 10 states raised ICMS from 17% to 20% on interstate parcels, widening tariff disparity and complicating rate cards. Carriers react by adding fuel-surcharge clauses that reset weekly, yet shippers resist pass-through increases. Technology fixes such as dynamic load pooling and platooning trials aim to shave idle kilometers, but their payback horizon remains uncertain. High volatility pushes smaller fleets toward subcontracting under asset-light aggregators, shifting pricing power upstream.
Less Than 13% Paved-Road Ratio Causing Transit-Time Variance
Only 13% of Brazil’s roads are paved, and the share falls below 8% in Amazonas and Pará, where rainfall causes axle-weight restrictions and detours. During wet seasons, delivery windows in these corridors stretch by 40-60%, forcing inventory buffers and higher safety stock at forward depots. CEP providers deploy dual-mode road-river routes to navigate flood-prone zones, yet modal transfers inflate handling costs. Limited infrastructure also constrains heavy-parcel adoption in agribusiness belts despite robust equipment demand. Shippers increasingly buy delivery-time insurance, adding another expense layer that dampens price-sensitive segments.
Segment Analysis
By End User Industry: E-Commerce Disrupts Traditional Manufacturing Leadership
Manufacturing still leads with a 41.90% share in 2024, underpinning continuous demand for inbound parts and outbound spares. E-commerce parcels, however, log a 6.06% CAGR between 2025-2030 as direct-to-consumer brands proliferate. Healthcare parcels secure premium yields by complying with stringent temperature mapping, rising alongside telemedicine consultations.
Financial services adopt hybrid digital statements, yet secure physical delivery of credit cards preserves steady volumes. Primary industries—agriculture and mining—favor heavy-duty parcel lanes for equipment, with service reliability intertwined with crop cycles. Offline retail seeks omnichannel parity through click-and-collect tie-ups, sustaining mid-volume flows that smooth seasonal peaks across networks.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Parcels Accelerate Despite Tax Headwinds
International consignments represent the fastest-expanding slice of the Brazil courier, express, and parcel (CEP) market, advancing at a 5.76% CAGR between 2025-2030 amid a resilient appetite for imported electronics and apparel. Domestic traffic remains the volume anchor with 64.72% share in 2024, leveraging dense urban routes and established regional hubs. Bilateral air-freight accords and dedicated freighter launches by GOL and Azul strengthen cross-border lead times, counterbalancing the new duty on low-value packages.
Streamlined digital declarations under the PRC program curb customs dwell time, helping platforms like Shein sustain click-to-door promises despite added taxes. Meanwhile, domestic saturation in São Paulo sways operators toward untapped interior corridors that demand customized pick-up schedules and hybrid truck-air legs. International players form joint ventures with local specialists to navigate ICMS documentation, ensuring compliant door-to-door services within single tracking environments.
By Speed of Delivery: Express Services Gain Premium Positioning
Express parcels expand at a 6.44% CAGR between 2025-2030 as metropolitan consumers value predictability over absolute price, even while non-express still holds 76.56% of the Brazil courier, express, and parcel (CEP) market share in 2024. Marketplace subsidies offset premium fees, with operators using micro-fulfillment dark stores to stage fast-moving SKUs near population centers. API-driven slot-based checkouts further bolster uptake by letting shoppers decide precise arrival windows.
Operationally, dynamic route optimization cuts empty-truck miles by 15%, closing the cost gap between express and standard lanes. Rural shippers continue leaning on non-express due to lower margins, yet gradual road upgrades shrink the delivery-time delta. Providers now roll out tiered service packs—next-day, two-day, and economy—letting merchants mix speed and cost per order.
By Shipment Weight: Light Parcels Dominate Amid E-Commerce Shift
Light parcels claim 70.21% share in 2024, mirroring the dominance of small electronics, apparel, and beauty categories on major platforms. Densification around light items enables higher stop counts per route, increasing driver productivity. Heavy parcels, expanding at a 4.18% CAGR between 2025-2030, benefit from farm-gate mechanization and industrial retrofit projects demanding bulky parts.
Smart load planning software clusters mixed-weight stops, making truck utilization more elastic. Return logistics for light items use reusable mailers, cutting packaging waste. Conversely, heavy-parcel lanes require lift-gate vehicles and site surveys, raising cost per stop but offering defensible revenue through specialized service.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Air Transport Gains Premium Positioning
Road keeps 52.89% of the Brazil courier, express, and parcel (CEP) market share in 2024, thanks to its reach, yet air transport grows at a 4.73% CAGR between 2025-2030, propelled by e-commerce guarantees and pharma urgency. Azul Cargo Express added converted Embraer E-195 freighters that service Manaus–Campinas routes, enabling same-day delivery for northern cities.
Road carriers counter rising diesel costs by adopting LNG trucks and platooning pilots, curbing fuel burn variability. Rail and waterway capacity remains niche, though bulk commodity shippers occasionally move oversized parcels via barge along the Madeira River, exemplifying multimodal versatility for project cargo.
By Model: C2C Emerges as Digital-Native Growth Vector
B2C keeps its leadership with 58.04% of the Brazil courier, express, and parcel (CEP) market size in 2024, but C2C achieves a notable 3.33% CAGR between 2025-2030, fueled by social-commerce growth. PIX real-time settlement shrinks cash-conversion cycles, encouraging individuals to offer nationwide shipping without capital lock-ups. Crowd-sourced drop-off kiosks inside convenience stores feed flexible pick-up options for peer sellers.
Leading carriers bundle on-demand label printing and flat-rate cartons, lowering entry barriers for occasional shippers. B2B flows from manufacturers remain steady, though multichannel strategies convert some orders to direct-to-consumer, shifting volumes out of traditional pallet lanes. White-label plug-ins for storefronts guarantee one-click shipping quotes across models, streamlining checkout.
Geography Analysis
Southeast Brazil anchors the volume pool, with São Paulo–Campinas forming an integrated logistics megaregion benefiting from deep port access at Santos and multiple cargo airports. Dense highway grids, favorable ICMS incentives, and tech-talent availability encourage automation pilots, reinforcing service reliability for same-day propositions.
The Northeast emerges as a strategic growth theater where federal investments in BR-101 duplication drive cross-state connectivity. Manufacturing diversification into Ceará and Pernambuco spurs parcel demand, while growing middle-class consumption boosts e-commerce penetration. Carriers deploy hybrid truck-air solutions to bridge long distances between Recife and hinterland towns, minimizing weather-related disruption.
In the North, sparse paved roads and river-dominant geography necessitate multimodal designs combining boat, truck, and light aircraft. Seasonal flood cycles dictate adaptive routing, prompting carriers to pre-position inventory at regional mini-hubs. While cost per kilo remains high, localized fulfillment ensures consistent access to consumer goods, supporting inclusive economic objectives.
Competitive Landscape
The Brazil courier, express, and parcel (CEP) market exhibits moderate consolidation, with the top five providers estimated to hold a significant share of the parcel revenues. Incumbents such as Correios, Jadlog, and Total Express broaden express footprints through automated sorters that raise hourly throughput. Technology-centric entrants leverage gig driver networks to undercut on-demand mile costs, intensifying price discipline in urban catchments.
Strategic collaboration has become prevalent. GOL Logistics partners with MercadoLibre to secure vertical belly-hold utilization, while DHL scales healthcare corridors by integrating CRYOPDP’s pharma compliance expertise. Consolidation continues via tuck-in acquisitions targeting regional delivery specialists, filling coverage gaps in interior states.
Innovation focus spans blockchain-based chain-of-custody, AI-driven ETA predictions, and autonomous parcel lockers to curb failed first attempts. Providers allocate up to 8% of annual capex to cybersecurity as parcel data volumes soar. Environmental stewardship gains prominence through carbon-offset offerings and electric van pilots across Curitiba and Florianópolis.
Brazil Courier, Express, And Parcel (CEP) Industry Leaders
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Empresa Brasileira de Correios e Telegrafos
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DHL Group
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FedEx
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Azul - Linhas Aéreas Brasileiras (including Azul Cargo Express)
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Total Express
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- August 2025: UPS unveiled Lablink, a dashboard that lets diagnostic labs link specimens to tracking data and print return labels.
- April 2025: DHL Group committed EUR 2 billion (USD 2.20 billion) to expand Health Logistics, channeling half toward the Americas for GDP-certified pharma hubs.
- November 2024: FedEx added new South America rotations linking Brazil with Miami, widening next-day coverage into U.S. gateways.
- February 2024: World Star Aviation delivered a Boeing 737-400F to Braspress Air Cargo, inaugurating the carrier’s freighter fleet.
Brazil Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
